UNITED STATES OF AMERICA
SECURITIES AND EXCHANGE COMMISSION
Securities Exchange Act of 1934
Release No. 50136 / August 3, 2004
File No. 3-11573
In the Matter of Harold F. Harris and Ronald E. Crews
The Commission has instituted administrative proceedings pursuant to Section 15(b)(6) of the Securities Exchange Act of 1934, against Harold F. Harris ("Harris") and Ronald E. Crews ("Crews") (together "Respondents"), based on the final judgment and injunctions entered against them in Securities and Exchange Commission v. U.N. Dollars Corp., et al., 01-CV-9059 (S.D.N.Y.). The Commission's complaint in that case alleged that Harris and Crews, as officers and directors of U.N. Dollars Corp., violated the registration and antifraud provisions of the federal securities laws by participating in a scheme to manipulate the price and trading volume of U.N. Dollars Corp. common stock. According to the Commission's complaint, Harris and Crews improperly provided ten million shares of unrestricted stock to pay a manipulator to affect the price and trading of their company's shares, and drafted materially false and misleading press releases to deceive investors and create an artificial market for U.N. Dollars Corp. stock.
On March 13, 2003, the Honorable Allen G. Schwartz, United States District Judge for the Southern District of New York, entered final judgment of default against Harris and Crews and permanently enjoined them from violating Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The Court also ordered Harris and Crews to disgorge proceeds of the fraud and pay civil monetary penalties and barred Harris and Crews from acting as an officer or director of any public company. On May 13, 2004, the United States Court of Appeals for the Second Circuit affirmed the entry of judgment by Judge Schwartz.
A hearing will be scheduled before an administrative law judge to determine whether the allegations contained in the Order are true, and in connection therewith, to afford Respondents an opportunity to establish defenses to such allegations, and to determine whether penny stock bars are appropriate and in the public interest.
The Order requires the Administrative Law Judge to issue an initial decision no later than 210 days from the date of service of this Order, pursuant to Rule 360(a)(2) of the Commission's Rules of Practice.